ACC 499 help A Guide to career/uophelp.com ACC 499 help A Guide to career/uophelp.com | Page 63

restatement may be necessary. During your initial evaluation of the
client, you discover the following information:
The client is currently undergoing a three (3) year income tax
examination by the Internal Revenue Service (IRS). A significant issue
involved in the IRS audit encompasses inventory write-downs on the tax
returns that are not included in the financial statements. Because of the
concealment of the transaction, the IRS is labeling the treatment of the
write-down as fraud.
The company has a share-based compensation plan for top-level
executives consisting of stock options. The value of the options
exercised during the year was not expensed or disclosed in the financial
statements.
The company has several operating and capital leases in place, and the
CFO is considering leasing a substantial portion of the assets for future
use. The current leases in place are arranged using special purpose
entities (SPEs) and operating leases.
The company seeks to acquire a global partner, which will require IFRS
reporting.
The company received correspondence from the Securities and
Exchange Commission (SEC) requesting additional supplemental
information regarding the financial statements submitted with the IPO.
Write an eight to ten (8-10) page paper in which you:
Evaluate any damaging financial and ethical repercussions of failur